Research Team at TDS, notes that the Bank of England left policy on hold as expected, but the vote shifted down from 8-1 to 9-0, with Ian McCafferty backing away from his dissenting vote for a rate hike.

Key Quotes

“The near-term forecasts were revised lower on heightened volatility in global growth and markets and lower oil prices, but the medium-term outlook was largely unchanged, with inflation shooting above target by 2018—a signal (reinforced during the press conference) that market rates were too easy.

We think yesterday’s decision and supporting material sent the following key messages: easing is not on the MPC’s table, global growth is the problem (not UK growth), and market expectations for monetary policy may have gotten a little too far ahead of themselves in recent weeks.”
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